In an effort to combat the rising cost of living, New York State is rolling out a new inflation refund program in the fall of 2025. Funded by a sales tax surplus, this initiative was approved as part of the FY 2026 budget.
The program aims to provide financial relief to over 8.2 million households across the state. Eligible residents could receive checks of up to $400. If you’re wondering if you qualify and how to claim this refund, keep reading to find out.
Who Is Eligible for the Inflation Refund?
To qualify for the New York State inflation refund, residents must meet certain requirements. These are:
- Tax Filing Requirement: You must have filed a state tax return (Form IT-201) for the tax year 2023 as a New York resident. This form is necessary for your information to be included in the automated selection process for the refund.
- Income Limits: The program has specific income thresholds based on your filing status. These limits are as follows:
- Single Filers or Heads of Household:
- AGI (Adjusted Gross Income) of $75,000 or less: $200 refund
- AGI between $75,001 and $150,000: $150 refund
- Married Joint Filers:
- AGI of $150,000 or less: $400 refund
- AGI between $150,001 and $300,000: $300 refund
- Married Separate Filers:
- AGI of $75,000 or less: $200 refund
- AGI between $75,001 and $150,000: $150 refund
- Qualifying Surviving Spouses:
- AGI of $150,000 or less: $400 refund
- AGI between $150,001 and $300,000: $300 refund
- Single Filers or Heads of Household:
- Dependents: Applicants cannot be claimed as dependents on someone else’s tax return.
- Residency Requirement: You must have been a full-time resident of New York State throughout 2023.
The maximum payment amount is $400, regardless of your category or filing status.
How Much Will You Get?
The amount of the refund you receive depends on your filing status and income. Here’s a breakdown:
Single Filers or Heads of Household:
AGI ≤ $75,000: $200
AGI between $75,001 and $150,000: $150
Married Joint Filers:
AGI ≤ $150,000: $400
AGI between $150,001 and $300,000: $300
Married Separate Filers:
AGI ≤ $75,000: $200
AGI between $75,001 and $150,000: $150
Qualifying Surviving Spouses:
AGI ≤ $150,000: $400
AGI between $150,001 and $300,000: $300
The maximum refund amount is $400, regardless of your filing status.
Do You Need to Take Any Action?
The good news is that you don’t need to do anything to claim your inflation refund. The process is automatic. The New York State Tax Department will use the information from your 2023 tax return (Form IT-201) to determine your eligibility and calculate your refund amount.
How Will You Receive the Refund?
Unlike past refunds that may have been deposited directly into your bank account, this inflation refund will be issued as a paper check. These checks will be mailed to the address listed on your 2023 tax return.
The checks will be sent out between October and November 2025, but no specific schedule has been provided for when you can expect yours. The Tax Department will distribute these checks in batches by region.
It’s important to keep your mailing address up to date with the Tax Department to avoid delays. If you’ve moved recently, be sure to update your address through your online account at tax.ny.gov.
New York State’s inflation refund program is an excellent opportunity for eligible residents to receive financial relief in response to inflation. With payments of up to $400, this program is expected to help millions of households.
If you meet the eligibility requirements, no additional action is needed on your part – simply wait for your refund to arrive via mail. Just make sure your address is updated to avoid delays.
